A Close Below $95.00 Gets Bears Involved: OIL
Crude Oil is trading slightly lower this morning after failing to hold $98 on Friday and then trading more than $2 from the highs in building what looks like a fail. The dollar is strong this morning pressing new swing highs so look to this to continue to keep pressure on this commodities priced in dollars - Crude. WTI Crude Oil has had every opportunity this year to test $100. Do not get me wrong, this market has displayed an impressive rally but with the failure to close above resistance at 98.22, we should be in store for a healthy correction. Crude is now trading to new swing lows since mid-week and poised to retest major support at 94.83. This will be the third test to this level in two weeks and I am expecting this retest to do the trick and kick in a much needed correction. We just witnessed Gasoline sky rocket yesterday over 10 cents, and Crude could not make new highs. We are witnessing equities make all-time highs and Crude could not make new highs. Geopolitical worries should not have should not directly affect the price of WTI Crude as much as the global benchmark; Brent Crude. Below the $95 level there is support at 93.50 a volume pocket, the .382 retracement and the 50 day moving average. This is $1.50 move but here is the reality, this market can remain bullish down $92. This is where the 200 day moving average sits and aligns with the 50% retracement from the early November lows and the recent 98.24 highs. To recap; look for a close below major support at the $95 level to signal a consolidation lower and potential sell off.
Resistance -96.63**, 98.22***, 98.75*, 100
Support- 95.89**, 94.83-94.97**, 93.50***